ETQ.L Regulatory News (ETQ)

ENERGY TECHNIQUE PLC

("The Company")

TRADING UPDATE FOR THE QUARTER ENDED 30 JUNE 2013

The Board is pleased to continue its recent practice of releasing each quarter's unaudited trading results, so as to keep shareholders and other stakeholders updated with the Company's progress in current property market conditions.

The Company has traded above management's expectations for the first quarter ended 30 June 2013 and the Board is pleased to announce a 207 per cent growth in Group profit before tax, compared with the corresponding quarter:

Sales grew by 18 per cent in the quarter ended 30 June 2013, due to strong growth in fan coil sales. During the quarter, fan coils were delivered to over 75 projects including large developments at 71 Queen Victoria Street; 3-10 Finsbury Square; 3 Merchant Square; and Tideway. This growth in sales is attributed to a number of sales and marketing initiatives introduced in the year ended 31 March 2013. In July 2013, Diffusion was very pleased to be awarded a project valued at over £1.0 million to supply fan coils in this financial year to a high-end residential project of DeVere.

Group net assets at 30 June 2013 amounted to £1.40 million (31 March 2013: £1.53 million) representing a net asset value of 48.8 pence per share. The net in-hand cash position at 30 June 2013 amounted to £212,000 (31 March 2013: £590,000). The reduction in net cash during the quarter ended 30 June 2013 arose from a combination of share buy-backs from Elsina Limited of £200,000, together with a short term increase in working capital. The Company had adequate headroom on its invoice financing facilities of £657,000 at 30 June 2013.

As stated in the 31 March 2013 Report and Accounts issued on 21 June 2013, enquiry levels for quality projects remain encouraging, with the order book growing recently from winning the DeVere high-end residential development. The Board has high expectations for its new eco-friendly 270 range of fan coils launched in April 2013, where initial sales have been very encouraging and the Board is confident the results for the first quarter represent the foundations for achieving another year of successful growth.

For further information:

Walter Goldsmith Chairman 020 8783 0033

Leigh Stimpson Managing Director 020 8783 0033

Ed Frisby/Ben Thompson finnCap Limited (Nominated Adviser) 020 7220 0500

NOTES TO EDITORS

With over 50 years in the heating and ventilation industry ("HVAC"), the Company's operating subsidiary Diffusion is one of the oldest and most established manufacturers of HVAC products in the UK. Diffusion is a market leader in the manufacture of premium quality fan coils and commercial heating products. Diffusion and Energy Technique are brand names recognised as highly engineered, quality products providing leading edge performance and energy efficiency.

Diffusion's products are installed into hotels, commercial offices, retail outlets, schools, hospitals, and more recently high-end residential. Diffusion has excellent relationships with many blue chip clients including Land Securities, Marks & Spencer, Boots, City Inn Hotels, and Stanhope Properties. All products are designed, developed and manufactured at Diffusion's 30,000 sq. ft. manufacturing facility in West Molesey, Surrey, offering premium quality products, designed specifically to meet customers' bespoke requirements.